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Whitepaper
This Whitepaper, along with future ones, will detail a first product based on the Uniswap protocol, with numerous unique Cardano blockchain modifications.
Ravendex Whitepaper
Abstract
Ravendex is a Cardano blockchain-based decentralized exchange. It enables blockchain participants to offer liquidity and establish a market for others to swap their native tokens.
Swappers pay a modest charge in exchange for this service, while liquidity providers get a return on their Investment.
Background
Decentralized exchanges (DEX) are a form of cryptocurrency exchange that enables direct peer-to-peer cryptocurrency transactions to take place online safely and without the use of a middleman.
DEX proponents argue that the attractiveness of decentralized exchanges is security. A centralized exchange can restrict your access to your cryptocurrency, limit or prohibit your ability to trade it, and potentially leave you exposed to hackers.
A decentralized exchange facilitates trade between individuals by using smart contracts (automatically executed protocols), but does not assume ownership of their currencies.
Uniswap and Curve on Ethereum, as well as PancakeSwap on the Binance Smart Chain, are just a few instances of successful DEXs based on existing blockchains.
Ravendex, however, is a decentralized exchange (DEX) upon the Cardano blockchain.
The Cardano blockchain is a brand-new, third-generation blockchain that focuses on proof of stake for throughput and energy efficiency, among other things.
According to some assessments, the Cardano network as a whole is 1.6 million times more efficient than Bitcoin.
Users and companies who opt to operate on the Cardano blockchain will have a huge and immediate demand for the financial services outlined above as this new ecosystem develops.
One distinction between Cardano and other blockchains is particularly noteworthy for the purposes of this whitepaper. Other smart-contract enabled blockchains' accounting methodology and virtual machine are vastly different. Tokens are kept as a collection of unspent outputs from earlier transactions, and they can be locked with a validation script that decides what conditions they can be used.
Introduction
Ravendex is a cross chain exchange on The Cardano Blockchain that operates using the EUTXO accounting model known for it’s unique features, like the ability to have shared liquidity be split among different assets on The Cardano Ecosystem.
We are also one of the very first projects on The Cardano Ecosystem to conceive the idea of a crypto asset lending and borrowing platform using the recently released Alonzo Hard Fork update which allows smart contracts to deposit assets and collect interests using a pre-defined set of rules.
When Launched, our APY returns might be small compared to other lending platforms on other blockchains like AAVE on the ETH network but our utilization of the borrowed funds and the total returns given to the investors at the end of the lending period is much greater and efficient compared to other networks due to the fast and transaction fee efficiency of The Cardano Blockchain.
Multi-function liquidity pool
Liquidity providers (LPs) can pick the pool that is most optimal for a given pair, yielding the highest returns/most capital efficient, by using various pricing algorithms for a single liquidity pool.
At first glance, this appears to result in liquidity fragmentation.
However, because that pool is the most traded against, LPs will automatically direct their money to the most efficient pool for a given pair.
Yearn Finance, for example, has developed an automated yield farming method that will assist LPs in re-balancing their money into the most efficient pools.
This is the same as having several AMM protocols with various pricing functions, but because all pools are on the same platform, transferring liquidity between pools and trading will be faster and cheaper.
Building an AMM with different pool roles in mind will allow for smooth incorporation of the finest community ideas without the need for a hard fork or large migrations.
This is the type of liquidity pool Ravendex will create.
- Constant-product pool
For most pairs, the constant product pricing curve works well, but inverse-correlated pairings (those with prices changing in opposing directions) suffer an impermanent loss.
A constant-product pool's pricing function is quite simple:
- Stable pool
Ravendex discovered that stable pairings (pairs with comparable prices, usually tied to an external asset like BTC or USD) had a superior function.
It's a dynamic "amplification coefficient" that combines constant-product and constant-sum functions.
This helps lower slippage on low-liquidity pools while always ensuring liquidity for large trades.
- Multi-asset pool
This generalizes the concept of constant-product function to more than two assets.
Instead of requiring LPs to contribute an equal quantity of two assets, it allows for the creation of a pool with any amount of any number of assets.
This essentially implies that an LP may give their whole portfolio and have it automatically re-balanced while still collecting fees.
- Dynamic pool
Ravendex’s "amplification factor" is extended from stable pairings to other pairs in general.
Dynamic Market Making (DMM) is the name of the concept.
The “amplification factor” in DMM is set depending on the intrinsic volatility of a pair.
It also offers a new charge structure in which the trading cost is constantly modified based on trading volume and price volatility.
These four pools are just a few instances of what Ravendex can do.
Every day, the AMM area fills up with new and improved ideas, and the best of them will be voted on by the community to be included into Ravendex.
Ravendex Features
- Cross Chain Exchange/ Swap Protocol
Ravendex will be a decentralized automated market maker protocol that will enable users to swap and trade native cardano tokens in a trustless manner. A cross-chain swap enables trading tokens across different blockchains without using an intermediary party (e.g. an exchange service) in the process.
Ravendex follows the HTLC protocol to create a trustless environment for the decentralized exchange of assets. The protocol guarantees that if all participants agree, the swap will take place. On the contrary, each participant should receive their locked funds back if some of them decide not to conclude the process.
- Native Assets Lending Protocol
With our smart contract released and deployed, users can connect their wallet using Nami Wallet, Gero Wallet or Yoroi Nightly Extension, deposit assets and earn interest in a secure yet decentralized manner.
- ERC-20 / BEP-20 To Cardano Converter
Our ERC-20 To Cardano Token Bridge would be helpful for project owners that would like to migrate their tokens from the Ethereum or Binance blockchain to utilize the low transaction fees of cardano by just a few clicks.
- Peer To Pool, Pool To Peer Lending Protocol (P2P)
Using our innovative pooled lending contract, we will be able to make lending and crypto loan access easier and yet decentralized as users can borrow pooled assets to payback at a specified date with interest.
The Ravendex lending protocol will enable you to exchange your deposited assets on the Cardano ecosystem, including those used as collateral, for another asset. It also enables you to repay your debt/loans using your deposited collateral.
READ THIS DISCLAIMER VERY THOROUGLY. CONSULT WITH YOUR OWN LEGAL AND FINANCIAL ADVICE BEFORE ENGAGING IN ANY ACTIVITY INVOLVING FINANCIAL RISK.
NEITHER Ravendex, NOR ANY ASSOCIATED THIRD-PARTY SERVICE PROVIDER SHALL BE LIABLE FOR ANY KIND OF DAMAGE OR LOSS, INCLUDING DIRECT AND INDIRECT, THAT MAY FALL UPON YOU AS A RESULT OF READING THE WHITEPAPER, AND OTHER MATERIALS PRODUCED BY Ravendex.
Materials produced by are not intended to be investment advice, solicitation of any kind nor an endorsement. Any decision or actions taken based on information presented in this whitepaper, the Ravendex platform or other associated content is done at the reader’s own discretion and risk. Forward looking statements Certain information set forth in this whitepaper includes forward-looking information regarding the future of the project, future events, projections, and estimations.
These statements may be identified by, but not limited to words and phrases, such as “will”, “should”, “believe to”, “expect”, “project”, “anticipate”, or words of equivalent or similar meaning. Such forward-looking statements are also included in other publicly available Ravendex materials, blog posts, interviews, social media outlets, etc.
Information contained in this whitepaper constitutes forward looking statements and includes but is not limited to:
1. The expected future performance of the project.
2. Completion of the project development.
3. The expected timeline of project development.
4. The expected exact distribution of funds.
5. Execution of project’s vision and strategy.
6. Future implementation of new features and platform functions.
There are no guarantees that Ravendex platform will succeed financially. Similarly, there are no guarantees that the $RAVE token will rise in value.
You are advised to thoroughly assess the risks and uncertainties involved before making any decisions.
No promises, in terms of token value or future performance are made. Representation and warranties for the reader Upon taking action on the basis of the information presented in this whitepaper, you confirm that:
1. This whitepaper, the Ravendex website or any other material produced by the Ravendexlabs team, is not an offering, solicitation or prospectus of any kind.
2. Ravendex is exempt from any direct or indirect liability to the maximum extent of the law.
3. $RAVE tokens are not regarded as securities in any jurisdiction and that $RAVE token is classified as a utility token.
4. You have a good understanding of the key components of blockchain technology and understand how blockchain operates. In addition, you fully understand how to use blockchain wallets, including safeguarding private keys.
5. You understand that no technology, regardless of its quality, is completely protected from malware or social engineering attacks.
6. You are fully aware of the risks in the crypto asset industry and are able to bear potential losses in full.
Last modified 3d ago